Some indications of how Dunedin’s water services will be shaped for the future could emerge in the coming days, but clarity might be months away.
The Dunedin City Council’s infrastructure services committee is due to discuss the subject tomorrow and it will come up again at a joint Otago and Southland mayoral forum scheduled for next Monday.
A report for tomorrow’s meeting goes through a raft of issues that will need to be considered in the next few months.
They include technical analysis, consideration of service delivery models, financial sustainability of water services and consultation requirements.
Councils in Otago and Southland will also need to think about in what ways they might work together.
Each council’s elected representatives are mulling five options — continuing to deliver water in-house, joint contracts, shared service arrangements provided through a formal entity, a management council-controlled organisation and a multi-council water services organisation.
"There is no expectation that any council will rule any option in or out at this point", the report for the city council said.
Staff recommended initially leaving all options on the table relating to regional discussions.
Such discussions are taking place against a backdrop of infrastructure deficits, cost pressures, pressure on rates and council debt.
A working group overseen by the chief executives of the Otago and Southland councils was established in April and it arranged for Morrison Low to develop a "first principles approach".
The consultancy’s report is due in November.
A formal report for city councillors is due in late January next year and engagement with mana whenua is planned to happen in advance of this.
It is intended the city council will be in a position to formally make an "in principle" decision on its preferred option in late January and this will then be subject to formal consultation with the community.
The council will have to explain by September 3 next year how delivery of water services will be financially sustainable by June 30, 2028.
It will also have to explain how revenue from and delivery of water services will be separated from other functions and activities.
Guidance from the Department of Internal Affairs indicates councils will need to ensure water revenue is spent on water services and that water services charges are transparent.
Each council has been asked to consider whether it should deliver water services in-house or establish a water organisation.
Councils will have to think about delivering services on a stand-alone basis or establishing a joint arrangement with other councils.
They might need to consider how to structure ownership and governance arrangements for any water organisation and how they might be set up to facilitate access to long-term borrowing for water infrastructure.
